By John Ikani
Naira fell significantly against the US dollar at the unauthorised parallel market on Monday, exchanging at N818/$1 in Abuja and N815 in Lagos.
The continuous devaluation of the naira against the dollar at the parallel market increased within the past three business days after the Central Bank of Nigeria announced plans to replace naira notes.
The apex bank said the decision was embarked upon to reduce excess cash in circulation and check counterfeiting.
Analysts have blamed the CBN move as the reason behind the further devaluation of the Naira in the black market, as holders of illicit funds are jostling to convert cash stacked outside of banks to dollars, further driving up the exchange rate.
In Abuja, the nation’s capital, currency dealers at the popular Bureau De Change hub in Wuse Zone 4 told newsmen that several customers came looking for dollars but had difficulty accessing it.
Similarly, in Lagos, the nation’s commercial hub, big-ticket cash holders are out on the streets to mop up the few available dollars, with high volumes of cash being released to the market.
On Friday, trading by dealers at the Eko Hotel sub-market alone was reportedly in excess of N2 billion.
Before the close of the business same day, the Eko Hotel cluster, which is one of the most liquid in Nigeria, could not raise $500 for a customer, who was in urgent need.
However, the naira gained slightly against the US dollar at the official market within this period.
According to data published on FMDQ websites, where forex is officially traded, the naira closed at N443.00 per dollar on Monday.
This represents a 0.39 per cent appreciation from the N444.75 rate it traded on Friday last week, with $40.05 million posted as forex turnover for the day.
